Limits on Holding Company Expansion.

Press Information Bureau

Government of India

Ministry of Finance

30-March-2012 17:27 IST

Limits on Holding Company Expansion

A Working Group (WG) was constituted by Reserve Bank of India (RBI) on introduction of Financial Holding Company (FHCs) structure in India in June 2010. WG has submitted its report in May 2011. The WG has proposed to put in place some limit on the expansion of non-banking business of Banking FHCs after the existing financial groups dominated by the banks migrate to holding company structure (i.e. Banking FHCs). Report of WG is available on RBI’s website www.rbi.org.in.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.

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